Economists had expected a fall of 0.2%, with this slide coming on top of a 0.4% decline in April.

But the wider industrial production sector lifted by a better-than-expected 0.4% in May, boosted by a rise in output in mining and quarrying.

Experts had expected a rise of just 0.1%, which builds on a rise of 0.4% the previous month.

However, the slump in manufacturing dents hopes of a re-balancing of the recovery, which is being led by consumer spending and the dominant services sector.

The figures come ahead of Chancellor George Osborne's summer Budget today, where he is set to present the first fully Conservative Budget since November 1996.

Belfast Telegraph

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